By KYIV. Dec 2 (Interfax-Ukraine) – The share of financial institutions predicting deterioration in the financial sector in the next six months was 50%, while in May 2022 this figure reached 83%, according to the results of a November 2022 Systemic Risk Survey conducted by the National Bank of Ukraine (NBU).
According to it, 72% of top managers reported a worsening of financial sector performance over the previous six months, 4% stated an improvement. 6% of managers assess the current state of the financial sector as good, 16% – as bad, 2% – as very bad.
Some 63% of survey participants rated the overall level of risk as high and 20% as very high.
All respondents indicated that the war with Russia was the source of the highest risk. Macroeconomic factors – inflation and exchange rate levels – also remained among the biggest sources of risk.
In addition, The risk associated with the business activity factor increased significantly over the past six months, as did the risk of fraud and cyber threats.
Meanwhile, corruption in the activities of law enforcement authorities and courts, a factor that had led the way since 2018, barely made it to the top ten sources of risk. The risk appetite of financial institutions was little changed over the past half a year.
The survey was conducted from November 10 to November 24 2022. Executives from 22 banks, 11 insurance companies, and three investment firms took part in this survey.
